Correlation Between Wha Yu and Eagle Cold
Can any of the company-specific risk be diversified away by investing in both Wha Yu and Eagle Cold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wha Yu and Eagle Cold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wha Yu Industrial and Eagle Cold Storage, you can compare the effects of market volatilities on Wha Yu and Eagle Cold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wha Yu with a short position of Eagle Cold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wha Yu and Eagle Cold.
Diversification Opportunities for Wha Yu and Eagle Cold
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wha and Eagle is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Wha Yu Industrial and Eagle Cold Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Cold Storage and Wha Yu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wha Yu Industrial are associated (or correlated) with Eagle Cold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Cold Storage has no effect on the direction of Wha Yu i.e., Wha Yu and Eagle Cold go up and down completely randomly.
Pair Corralation between Wha Yu and Eagle Cold
Assuming the 90 days trading horizon Wha Yu Industrial is expected to generate 2.19 times more return on investment than Eagle Cold. However, Wha Yu is 2.19 times more volatile than Eagle Cold Storage. It trades about 0.22 of its potential returns per unit of risk. Eagle Cold Storage is currently generating about -0.1 per unit of risk. If you would invest 1,660 in Wha Yu Industrial on September 1, 2024 and sell it today you would earn a total of 270.00 from holding Wha Yu Industrial or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wha Yu Industrial vs. Eagle Cold Storage
Performance |
| Timeline |
| Wha Yu Industrial |
| Eagle Cold Storage |
Wha Yu and Eagle Cold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wha Yu and Eagle Cold
The main advantage of trading using opposite Wha Yu and Eagle Cold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wha Yu position performs unexpectedly, Eagle Cold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eagle Cold will offset losses from the drop in Eagle Cold's long position.| Wha Yu vs. Gemtek Technology Co | Wha Yu vs. Arcadyan Technology Corp | Wha Yu vs. Zinwell | Wha Yu vs. Silitech Technology Corp |
| Eagle Cold vs. Formosa Electronic Industries | Eagle Cold vs. Golden Biotechnology | Eagle Cold vs. Leader Electronics | Eagle Cold vs. Universal Vision Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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